EUROS
 

Can someone explain in laymans terms to me the value of the euro to the US dollar. I will be going to Germany for Christmas.

It currently costs about $1.25US to buy 1 Euro. So, if something is priced at 100 Euros, this is roughly equivalent to $125US. This changes daily, and has become more favorable lately. You can check on the internet by entering "foreign exchange rates."

currencyconverter.com

In terms of understanding how much US dollars you'll ultimately pay for things you purchase in Euros, there is not an easy way to do this while you are still traveling. Whether using credit cards or paying for things with Euros in cash, the US Dollars cost is determined by both the daily exchange rate AND bank fees added for each transaction. These 2 factors are documented on your statements which usually you won't be able to see until you either get a statement in the mail or look at your activity online after it has posted to your account.

To keep a running track of dollars spent while traveling you could multiply your Euro receipts by the rate when you left home and add 3% or so to cover the fees.

If you use a credit card for any purchases insist that the charges be posted in Euro rather than US$. Some merchants offer to do this for your convenience but what it does is allow the merchant to set the exchange rate, always at a worse rate for you.

To be safe, I'd buy travellers cheques in € now. Preferably enough to cover your stay. You can cash them without fees at any German citibank. (That is if Amex and Citibank are still in business by december)

The USD is doomed and will crash in the forseeable future. Don't know for sure, if that will be before christmas, but it's very likely TC are you best option.

People over here are stocking up on gold and silver waiting for the crash. Or they're simply spending more.

A few people are still in denial. (very few actually) Whatever you do, do something just don't sit around and wait. i.e. I'm selling my Yen to jump on the gold and silver bandwagon at the moment.
It wont help much, but at least you've done something.

Anyway TC's in € are a good option for december.

For example, you want to get a $100USD per night hotel room, you look at rooms that are priced 75 euro.

Don't know about Germany but we tried to use travellers cheques in Italy, a few years ago, and it was a real pain. Difficult and time consuming. Shops and restaurants did not take them, we had to queue up in a bank and then they would only change two at a time.

There is a terrific currency conversion cheatsheet you can print out and take with you on:

http://www.oanda.com/convert/cheatsheet

Just key in your two currencies - in your case - Euro and USD. I always print out a copy before our trips and keep it in my bag for easy reference when we are shopping.

Kay

Yep, Citibank in Germany will cash them at face value if they're in € and as many as you like.
Other Banks charge additional fees!

Why would you fool around with Travellers Checks when ATM's and credit cards are so easy and cheaper?

Just want to point out that credit card bank will carge a percentage fee for changing euros to US dollars. This is on top of fee Visa or Mastercard changes. There are several threads about this, but for those who travel outside US a lot, Capitol One does not charge any fee and (and does NOT charge a worse exchange rate.)
Your bank will add a percentage fee when you use ATM, but still it's the easiest way to get cash.

To convert any currency to another using the current rate, open google.com, type the conversion you want and hit the Search button. For example:

<b>100usd in eur</b> to convert a hundred dollars to Euro, or

<b>50eur in usd</b> to convert fifty Euro to dollars

...and like that.

There are many banks and credit cards available out there that do not charge anything in addition to the standard 1% currency conversion fee for paying with a credit card or for withdrawing money from an ATM. Shop around if your bank or credit card company is charging extra.

If the exchange rate is $1.25 per euro and you pay only the 1% exchange fee either with credit card or for euros you've withdrawn from an ATM, a 79.20 euro per day hotel room would equal about $100.

I have a checking acct at a CREDIT UNION just for foreign trips. They charge no ATM fees other than a reasonable euro conversion rate. I think this is typical of credit unions.

In case of emergency, I have a relative hold a signed check on my regular bank account. If needed, she can deposit the check in my credit union acct to cover unexpected expenses.